SDTEF's Water Rate Formation Backgrounder
In the summer of 2011, Mayor Jerry Sanders officially ended a two year drought ordinance in the City of San Diego. Lack of water in an unfavorable climate forced leaders in the San Diego region to impose behavioral restrictions on the usage of water. Non-price strategies, such as command and control limits on how much water a household could use and informational campaigns asking citizens to consume less water were combined to encourage conservation of water. Pricing strategies, such as tiered rates, also proved effective during the recent drought. This report examines the factors used to calculate water rates at local San Diego region water agencies.